MIRA INFORM REPORT

Report Date :

25.01.2012

IDENTIFICATION DETAILS

Name :	RAJASTHAN ANTIBIOTICS LIMITED
Formerly Known As :	CEPHAM MEDICAL LEASING LIMITED CEPHAM MEDICAL LIMITED
Registered Office :	M 134, Connaught Circus, New Delhi – 110001
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	17.03.1986
Com. Reg. No.:	55-23616
Capital Investment / Paid-up Capital :	Rs.52.758 Millions
CIN No.: [Company Identification No.]	U24231DL1986PLC023616
TAN No.: [Tax Deduction & Collection Account No.]	DELR11698B
PAN No.: [Permanent Account No.]	AAACR0925L
Legal Form :	A Closely Held Public Limited Liability Company.
Line of Business :	The Company is Engaged in Manufacturing of Bulk Drugs and Manufacturing cum Trading of Milk and Herbal Products.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 920000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

LOCATIONS

Registered Office :	M 134, Connaught Circus, New Delhi – 110001, India
Tel. No.:	91-11-43561740/ 41/ 42/ 47666106/ 47666111/ 26616318
Fax No.:	91-11-43561743
E-Mail :	chawla.jp@gmail.com info@jpc.co.in secretarial99@gmail.com info@cebonindia.com
Corporate Office :	M 39, Connaught Circus, New Delhi – 110001, India
Factory :	Plot A-619 and 630, RICO Industrial Area, Bhiwadi – 301019, District Alwar, Rajasthan, India
Tel No.:	91-1493-222278/ 512251

DIRECTORS

(AS ON 12.09.2011)

Name :

Mr. Ashish Pruthi

Designation :

Chairman Cum Managing Director

Address :

M – 255, Greater Kailash – II, New Delhi – 110048, India

Date of Birth/Age :

19.08.1976

Date of Appointment :

01.04.2010

Pan No :

AMIPP4490P

DIN No : 

01182469 

Email :

Pruthi99@yahoo.com

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U15203CH1999PTC023131	RENESA EXPORTS PRIVATE LIMITED	Director	03-12-99	03-12-99	29-10-10	Active	NO
2	U15203DL2005PTC140011	KRISH NUTRIENT PRIVATE LIMITED	Director	25-08-05	25-08-05	18-02-11	Active	NO
3	U24231DL1986PLC023616	RAJASTHAN ANTIBIOTICS LIMITED	Managing director	01-04-10	01-01-07	-	Active	NO
4	U52310DL2009PTC189924	AMOS BIOSCIENCES PRIVATE LIMITED	Director	01-05-09	01-05-09	01-07-09	Active	NO
5	U52300DL2009PTC189964	MANVIN HEALTH PRIVATE LIMITED	Director	10-01-11	04-05-09	-	Active	NO
6	U52100DL2009PTC194061	ARVIV LIFESCIENCES PRIVATE LIMITED	Director	08-09-09	08-09-09	-	Active	NO
7	U52100DL2010PTC201633	REVIVAA BIOTECH PRIVATE LIMITED	Director	16-04-10	16-04-10	-	Active	NO
8	U40101CH2010PTC032005	GRD POWER PRIVATE LIMITED	Additional director	13-09-10	13-09-10	-	Active	NO
9	U52602DL2009PTC192681	BARFANI BABA PHARMA PRIVATE LIMITED	Director	10-01-11	10-01-11	-	Active	NO

Name :

Mr. Rakesh Kumar Girdhar

Designation :

Director

Address :

D-15/4, First Floor, Ardee City, Gurgaon – 122003, Haryana, India

Date of Birth/Age :

30.11.1962

Date of Appointment :

01.11.2008

DIN No.:

02380490

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U24231DL1986PLC023616	RAJASTHAN ANTIBIOTICS LIMITED	Director	01-11-08	01-11-08	Active	NO
2	U52100DL2010PTC201633	REVIVAA BIOTECH PRIVATE LIMITED	Director	16-04-10	16-04-10	Active	NO

Name :

Mr. Sethuraman Vaidyanathan Iyer

Designation :

Director

Address :

29, Vivekanandar Nagar, Chennai – 600099, Tamilnadu, India

Date of Birth/Age :

01.01.1953

Date of Appointment :

02.05.2011

DIN No :

03519628

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U24231DL1986PLC023616	RAJASTHAN ANTIBIOTICS LIMITED	Director	12/09/2011	02/05/2011	Active	NO

KEY EXECUTIVES

Name :	Mr. Vipul Garg
Designation :	Company Secretary
Address :	88/3, Near Sadanand School, Krishan Pura, Panipat – 132103, Haryana, India
Date of Birth/Age :	23.08.1987
Date of Appointment :	06.09.2010
Din No :	ANIPG113B

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 12.09.2011)

Names of Shareholders	No. of Shares
Arviv Lifesciences Private Limited, India	1144684
Ashish Pruthi	1000
Radhika Pruthi	500
Manvin Heath Private Limited, India	1143184
Barfani Baba Pharma Private Limited, India	2483397
Renesa Exports Private Limited, India	500000
Meera Pruthi	3000
Total	5275765

(AS ON 30.09.2011)

Equity Shares Break – up

Category	Percentage
Bodies corporate	99.91
Directors or relatives of directors	0.09
Total	100.00

BUSINESS DETAILS

Line of Business :

The Company is Engaged in Manufacturing of Bulk Drugs and Manufacturing cum Trading of Milk and Herbal Products.

Products :

Products Description	Item Code No.
Pharmaceuticals Products	2423

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Industrial Development Bank of India,

Jeevan Nidhi Building, LIC Complex, Ambedkar Circle, Bhawani Singh Road, Jaipur – 302 001, Rajasthan, India

· HDFC Bank Limited

· State Bank of Bikaner and Jaipur

Faiz Road, Karol Bagh, New Delhi – 110005, India

· State Bank of Hyderabad

Flat No.110, Suryakiran Building, 19 KG Marg, New Delhi – 110001, India

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Rupee Term Loans Bank Secured	0.000	5.123
Total	0.000	5.123

Banking Relations :	--
Auditors :
Name :	J. P. Chawla and Company Chartered Accountants
Address :	43, Dariya Ganj, New Delhi – 110002, India
PAN No.:	AAAFJ1213J
Other Related Parties :	· Cepham Milk Specialities Limited · Cebon India Limited · Cepham Laboratories Limited · Cepham Organics Limited · Amos Biosciences Private Limited · Arviv Life Sciences Private Limited · Manvin Health Private Limited · Barfani Baba Pharma Private Limited · Revivaa Biotech Private Limited · Cepham Agencies Private Limited · D. P. Towers Private Limited

CAPITAL STRUCTURE

(AS ON 31.03.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
6000000	Equity Shares	Rs.10/- each	Rs.60.000 Millions
600000	Redeemable Preference Shares	Rs.100/- each	Rs.60.000 Millions
	Total		Rs.120.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5275765	Equity Shares	Rs.10/- each	Rs.52.758 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		52.758	52.758	47.758
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		177.484	114.842	48.736
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		230.242	167.600	96.494
LOAN FUNDS
1] Secured Loans		0.000	5.123	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.000	5.123	0.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.042
TOTAL		230.242	172.723	96.536
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		102.069	80.427	67.155
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		1.536	0.479	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	67.564	66.713	26.300
	Sundry Debtors	103.874	87.596	51.371
	Cash & Bank Balances	33.501	16.632	15.236
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	80.746	47.832	21.030
Total Current Assets		285.685	218.773	113.937
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	26.486	24.120	26.247
	Other Current Liabilities	79.008	65.934	46.915
	Provisions	53.554	36.902	11.394
Total Current Liabilities		159.048	126.956	84.556
Net Current Assets		126.637	91.817	29.381
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		230.242	172.723	96.536

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	784.657	553.955	229.295
		Other Income	2.650	4.215	1.460
		TOTAL (A)	787.307	558.170	230.755
Less	EXPENSES
		Consumption Materials Changed Inventories	532.874	333.321
		Manufacturing Services costs	81.152	80.387
		Employee Related Expenses	16.306	13.264	203.971
		Administrative, Selling and Other Expenses	40.884	47.273
		Research Development Expenditure	18.267	2.703
		Prior Period Items	0.871	0.169
		TOTAL (B)	690.354	477.117	203.971
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		96.953	81.053	26.784
Less	FINANCIAL EXPENSES (D)		4.844	2.357	0.385
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		92.109	78.696	26.399
Less/ Add	DEPRECIATION/ AMORTISATION (F)		8.367	7.603	6.774
	PROFIT BEFORE TAX (E-F) (G)		83.742	71.093	19.625
Less	TAX (H)		21.222	24.987	5.835
	PROFIT AFTER TAX (G-H) (I)		62.520	46.106	13.790
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		72.492	26.386	12.596
	AMOUNT AVAILABLE APPROPRIATIONS		0.122	0.000	0.000
	BALANCE CARRIED TO THE B/S		135.134	72.492	26.386
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	124.224	118.397	35.337
	TOTAL EARNINGS		124.224	118.397	35.337
	IMPORTS
		Goods for processing / Resale	NA	128.158	3.560
	TOTAL IMPORTS		NA	128.158	3.560
	Earnings Per Share (Rs.)		11.85	8.74	2.89

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	7.94	8.26	5.98
Net Profit Margin (PBT/Sales)	(%)	10.67	12.83	8.56
Return on Total Assets (PBT/Total Assets}	(%)	21.60	23.76	10.84
Return on Investment (ROI) (PBT/Networth)		0.36	0.42	0.20
Debt Equity Ratio (Total Liability/Networth)		0.69	0.79	0.88
Current Ratio (Current Asset/Current Liability)		1.80	1.72	1.35

LOCAL AGENCY FURTHER INFORMATION

DETAILS REGARDING MANAGEMENT DISCUSSION AND ANALYSIS

The company has recorded sales revenue and other income of Rs.808.900 Millions against Rs.555.100 Millions in the previous year. It represents a growth of 46% over preceding year. Further the company has registered an export of Rs. 124.200 Millions as compared to Rs. 118.400 Millions in the previous year. The Management’s aggressive strategy of focusing on improving business and operational performance has borne fruits. The operations of the company are steadily improving and company is looking forward to healthy revenue and numbers profit in the coming years. The company earned Profit before tax of Rs. 84.600 Millions against Rs. 71.300 Millions earned in the previous financial year showing an increase of 13.300 Millions. After providing for taxation of Rs. 22.300 Millions (previous year Rs. 25.500 Millions), net profit worked out to Rs. 62.500 Millions as compared to Rs. 46.100 Millions in the previous year registering an increase of Rs. 16.400 Millions and representing a growth of 36% over the preceding year. The company is steadily moving on high growth trajectory and shall continue its journey of profitable growth.

CONTINGENT LIABILITIES:

The Company has given a corporate guarantee amounting to Rs. NIL (Previous Year Rs 220.000 Millions).

The Company has executed a B-1 Bond for Rs 10.000 Millions (Previous Year Rs 10.000 Millions) in favor of Central Excise Range III Dhaba Complex Bhiwadi, Rajasthan.

The Company has given margin money against Bank Guarantee of Rs.0.162 Million (Previous Year Rs.0.162) to the Excise and Taxation Commissioner of Derabassi.

FORM 8:

Corporate identity number of the company	U24231DL1986PLC023616
Name of the company	RAJASTHAN ANTIBIOTICS LTD
Address of the registered office or of the principal place of business in India of the company	M- 134, Connaught Circus, New Delhi -110001, India secretarial99@gmail.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10174483
Type of charge	Immovable Property Book Debts Movable Property Floating Charge Others: All current and movable fixed assets present and future
Particular of charge holder	· State Bank of Bikaner and Jaipur 16/67-68, Faiz Road, Karol Bagh, New Delhi – 110005, India Sbbj10332@sbbj.co.in
Nature of instrument creating charge	1. Joint Deed of Hypothecation, 2. Deed of Hypothecation of movable assets forming part of fixed/block assets. 3. creation of equitable mortgage 4. Particulars of all Joint Charge Holders
Date of instrument Creating the charge	14.09.2011
Amount secured by the charge	Rs.251.100 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interests: On CC - 5.00% above Base Rate i.e. 15.25% (Floating) p.a. On Term Loan: 5.50% above Base Rate i.e. 15.75% (Floating) p.a. Terms of Repayment: CC: Payable on Demand Term Loan: Repayment shall be made as follows: 2012-13: 4 quarterly installments of Rs.5.832 Millions each (April 12, July 12, Oct 12, Jan 13) 2013-14: 4 quarterly installments of Rs.5.832 Millions each (April 13, July 13, Oct 13, Jan 14) 2014-15: 4 quarterly installments of Rs.5.832 Millions each (April 14, July 14, Oct 14, Jan 15) Margin: On CC: Stock-25%, Book Debts-45% On Term Loan: 41.67% Extent and Operation of the charge The charge operates as security as first pari-passu charge with State Bank of Bikaner and Jaipur and State Bank of Hyderabad Others: This is to secure various fund based and non fund based limits aggregating Rs.251.100 Millions in consortium.
Particulars of the property charged	First pari passu charge by way of hypothecation of entire current assets of the company including raw materials, finished goods, semi finished goods, stores and spares and book debts and other current assets First pari passu charge on entire plant and machinery and other fixed assets both present and future including machineries procured out of Bank's Term Loan. Equitable mortgage of Unit's Land and Building (Both present and future) situated at plot No. 619 and 630, RIICO Industrial Area, Bhiwadi, Distt. Alwar (Rajasthan) on first pari-passu charge basis with SBH
Particulars of the present modification	The limits has been enhanced from 145.000 Millions to 251.100 Millions in Consortium Banking arrangement with SBBJ as Lead Bank and other Consortium member is SBH SBBJ: CC (Hypothecation)- Rs.110.000 Millions, {sub limit: for book debts - Rs. 55.000 Millions, EPC/FBP/FBD - Rs.18.000 Millions, BG/LC - Rs30.000 Millions}, Term Loan-Rs.35.000 Millions and car, loan Rs1.100 Millions SBH: CC (Hypothecation) – 70.000 Millions, {sub limit: for Book Debts - Rs. 35.000 Millions, EPC/FBP/FBD - Rs. 12.000 Millions, BG/Letter of credit - Rs. 20.000 Millions}, Term Loan-Rs. 35.000 Millions

FIXED ASSETS

· Land

· Factory Building

· Plant and Machinery

· Furniture and Fixture

· Office Equipment

· Data Processing Machine

· Motor Vehicles

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.49.97
UK Pound	1	Rs.77.74
Euro	1	Rs.65.09

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		46

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.